Accessory Dwelling Units or ADUs. There are many reasons to have one and they’re a growing trend. Appraisers need to be aware of possible changes to local laws regarding ADUs. Dallas is the latest municipal entity to jump into the effort to make it easier to add an ADU to a single family residence.
This growing trend is something we believe appraisers should be very aware of and start to think about in terms of ADU valuation. FreddieMac has reported on the potential increase in unit volumes, particularly in California and Texas.
Accessory dwelling units, also known as granny flats, backyard cottages, or in-law suites, are secondary units that are typically built on the same lot as a primary residence. ADUs have become more acceptable in many municipalities for several reasons:
Overall, ADUs have become more acceptable in many municipalities because they provide an affordable, sustainable, and flexible housing option that can help meet the needs of a growing population. It’s reasonable to expect to encounter them more frequently on an inspection and be ready to appropriately include them in the valuation.
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